Relief to central employees: Discussion intensifies regarding dearness allowance

New Delhi. Curiosity regarding Dearness Allowance (DA) has once again increased among central employees and pensioners. Discussions are intense over a possible revision for the January–June 2026 period, especially with an announcement expected before Holi. However, if we look at the trends of the past years, there have been very few announcements of DA increase before Holi which falls in the beginning of March.

What is the Current Status?

At present, central employees are getting 58 percent dearness allowance. The previous revision was announced on October 1, 2025, for the July–December 2025 cycle, which had increased the rate by 3 per cent. Now the next amendment is to be effective from January 1, 2026.

How much increase is expected?

There is discussion among employee organizations that this time an increase of up to 2 percent is possible. If this happens, DA will increase from 58 percent to 60 percent. However, the final decision will depend on inflation data. DA is mainly calculated on the basis of All India Consumer Price Index (AICPI).

Announcement before or after Holi?

DA revision happens twice a year. Once around March and second time in October-November. The second installment is often announced around Diwali. But it is not necessary that the March announcement be made every year before Holi. When Holi falls in early March, cabinet approval usually comes in the latter part of the month. In such a situation, it is likely that if the normal procedure is followed, this time also the official announcement can be made after Holi.

What are the expectations of employees?

Central employees and pensioners see the increase in DA as a big relief amid the rising inflationary pressure. An increase of 2 percent may seem minor, but when combined with the basic salary, its impact on the monthly income is clearly visible. The final decision will come only after the approval of the Central Government Cabinet. Till then, employees will keep their eyes focused on the inflation figures and the next step of the government.